It would come in 2025! They Want to Postpone Cryptocurrency Tax for Three Years

South Korea's right-wing political party has proposed delaying the taxation of cryptocurrency earnings for three years. If this law is passed, the start of the tax on the country's crypto earnings will be postponed from 2025 to 2028.

In the description of the draft law on the website of the South Korean National Assembly, it was stated that "Since the sentiment of crypto investors is currently negative, if the country imposes an income tax on an asset with higher risk, most investors are expected to leave the market." The bill was proposed last Friday.

The 20 percent tax on crypto earnings was originally planned to go into effect on January 1, 2022, but due to intense reactions from investors and industry experts, it was postponed twice and extended until January 1, 2025.

South Korea's right-wing People Power Party, to which current President Yoon Suk-yeol belongs, promised to postpone the crypto profits tax in the last general election.

According to local news reports, the country's Ministry of Economy and Finance stated that it has not yet made a decision on additional delays regarding the crypto tax. The Ministry will announce new changes to the tax law at the end of this month.

The country hosts one of the largest and most active cryptocurrency markets in the world. According to the Financial Services Commission, approximately 6.5 million citizens (12.5 percent of the country's population) were using crypto at the end of last year. According to Kaiko data, the most used fiat currency for crypto trading in the first quarter of 2024 is the Korean won, surpassing the US dollar.

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